True or false? a. A firm that earns the opportunity cost of capital is earning economic rents.
Fantastic news! We've Found the answer you've been seeking!
Question:
True or false?
a. A firm that earns the opportunity cost of capital is earning economic rents.
b. A firm that invests in positive-NPV ventures expects to earn economic rents.
c. Financial managers should try to identify areas where their firms can earn economic rents, because it is there that positive-NPV projects are likely to be found.
d. Economic rent is the equivalent annual cost of operating capital equipment.
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
Posted Date: